Hedging the wheel

The calls expire worthless because nobody takes the underlying early. The MNQ short goes back on.

Why do you have to make comments like “Dude, you’re too old to suck at this.”? I’m trying to learn something.

 

Ok. Goodbye.

 

If this was really a naked call that I sold with a strike of 100 and the stock rallied to 120 wouldn’t I have to buy shares at 120 to sell them at 100? Since I already owned the stock at 100 and I drop the short quickly isn’t that just a little different?

 

on top of that he has a 3x daily against a 5x straight.

there’s all sorts of basis here.

 

yes there is, but the 5X product has the kind of leverage I’m looking for.

 

why?

 

Why take assignment at all when you can just roll the put strike ATM or a -.6-7 delta?

 

it really depends on what’s happening. I have rolled but really didn’t see an advantage to it. If the strike is way ITM, then the premium is probably higher than what I sold it for. Really no advantage to rolling.

 

Just not to tie up a lot of capital in what I perceive to be only a hedge. More of a bang for the buck thing

 

I see a premium on puts vs calls that's not insignificant and it ties up less BP. What strike did you get assigned?